Govt to Offer Incentives for Up to 25% Electronics Parts

ECMS will start accepting applications from industry stakeholders within three weeks

- Shouvik Das & Jatin Grover

An incentive scheme for local manufacturing of a range of electronic components from smartphone displays to battery cells to camera modules was notified on Tuesday by the central government, giving a fillip to manufacturers looking to boost domestic capacity through greenfield or brownfield investments.

The Electronics Component Manufacturing Scheme (ECMS) will start accepting applications from industry stakeholders within the next three weeks, following a brief consultation period on how the scheme will be made accessible to the industry, Union IT minister Ashwini Vaishnaw said at a media briefing on Tuesday.

The ₹22,919 crore or $2.7 billion scheme from the ministry of electronics and information technology (Meity) will offer incentives of up to 10% of turnover and up to 25% of capital expenditure in setting up electronics components manufacturing in the country. The incentives will become applicable from this fiscal itself.